The credit market around the small business loan has shifted significantly in recent years. Most major banks will not offer loans to those who are self-employed, nor will they offer to small businesses that are just starting up. In fact, the self-employed are having trouble getting personal loans, much less loans for their businesses. We will be discussing the best way to qualify for this type of lending in today’s discussion.
When applying for a small business loan, your best bet is to contact your local office of the Small Business Administration. The SBA has a special lending program designed for entrepreneurs, self-employed people, and small businesses. Under this program, you will be extended funds that are subsidized by the federal government. This allows for large banks to meet the needs of new ventures. This is true even when they have concerns about overextending credit to less than ideal candidates.
Attempting to get financing without such programs would be very difficult, since most banks require you to have minimum revenue of $100,000 per year. On top of that, they require you to have a personal and business credit score over 700. Some banks even require you to have been in business for more than 10 years.
So, you should gather up all of your financial paperwork, your business plan, and then contact your local chapter of the SBA. There you should have a counselor assigned to your case that will look over your paperwork to make sure you have all of the information you’ll need in order to qualify for a loan. After that, it will simply be a matter of applying to an appropriate lender for a small business loan.
For more information, go to Small Business Loan at http://www.unsecuredbizloan.com/small-business-loan/